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Credit cards however, can be used to get free stuff from rewards. Credit loans or payment plans can also be used to get a higher credit score, making the first
by jvanderbot 1y ago
Credit cards however, can be used to get free stuff from rewards.
Credit loans or payment plans can also be used to get a higher credit score, making the first item easier.
Conversely to your example of credit making cash,
Cash can make you money through investing, so Credit can also be used to keep higher amounts of cash on hand when purchases are made. , e.g., buying a car on credit and using the car money to invest. But we're saying the same thing there.
- kiba 1y agoCredit card rewards are just discounts, discounts that are charged to the merchant. It's not a free lunch by any means.
- BenjiWiebe 1y agoAnd as a merchant, yes it's annoying, but it's also nice when a customer pays with a credit card, because we actually get paid then.
- jvanderbot 1y agoI think that's a technicality. From my perspective 100% discount is called "Free", and I get that a few times a year when flying (tickets, upgrades, etc) I calculate 100% based on the amount I get from my preferred airline for paying cash for groceries (0) vs the amount I get by using a card they issue (a few imaginary points/$). Then I trade those points for things I couldn't have had by paying cash. As long as I don't pay interest, we're in "Free" territory.
- lxgr 1y agoNo, you’re still paying for all of that to some extent. Less than people carrying a balance and/or paying with cash or debit cards, sure, but more than zero. (It would be a pure redistribution from cash to card payers only if issuers made no profit or even a loss on never-balance-carrying cardholders, but if they didn’t, why would they still have them as customers?) It’s still the rational thing to do from an individual perspective, of course, which is why these rewards are so sticky.